For purposes of the built-in loss limitation,the 2-year presumptive rule of tax avoidance can be rebutted if there is a clear and substantial relationship between the contributed property and the corporation's business.

Question

Quizplus · Accepted Answer

The 2-year presumptive rule of tax avoidance can be rebutted if the contributed property has a clear and substantial relationship with the corporation's business, even if it has not been held for 2 years. Therefore, the statement in the question is true.

For Purposes of the Built-In Loss Limitation,the 2-Year Presumptive Rule